How do learning orientation and strategy yield innovativeness and superior firm performance?

Dulger M., Alpay G., YILMAZ Ç., BODUR M.

SOUTH AFRICAN JOURNAL OF BUSINESS MANAGEMENT, vol.45, no.2, pp.35-50, 2014 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 45 Issue: 2
  • Publication Date: 2014
  • Journal Name: SOUTH AFRICAN JOURNAL OF BUSINESS MANAGEMENT
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.35-50
  • Keywords: innovativeness, learning orientation, strategy, Porter, performance, Turkey, MARKET ORIENTATION, ORGANIZATIONAL PERFORMANCE, COMPETITIVE ADVANTAGE, KNOWLEDGE MANAGEMENT, ANTECEDENTS, TECHNOLOGY
  • Middle East Technical University Affiliated: Yes

Abstract

This paper attempts to shed light on the role of learning orientations of firms and their adoption of Porter's generic strategies on four dependent variables: Behavioral innovativeness, product innovativeness, technological innovativeness and, ultimately, firm performance. Hierarchical regressions were run with data from a random sample of 121 firms operating in Turkey. Findings indicate that internally-focused learning, market-focused learning and differentiation strategy have significant effects on the three innovativeness dimensions. When firm performance is included as the eventual outcome variable into the analysis, internally-focused learning, focus strategy and product innovativeness emerge as its main predictors. In fast-paced, highly unpredictable market environments, managers can make use of these findings to their benefit in terms of elevating their flans' innovativeness and performance levels.